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Estimating Profits
The MAO formula teaches us at what price we can buy a house with little risk of losing money and a good chance of making a significant profit.
But, how much profit?
If you buy at MAO, the difference between ARV and Purchase Price + Repairs is 30% of ARV.
You will not earn that 30%.
To see all of the costs involved, take a look at our Profit Calculation session.
After extensive analysis of over 120 properties, that profit estimation is closer 15-22% of ARV.
If you have questions and would like more dedicated and one-on-one/small group education, we can set up live in-person or on-the-job learning sessions - upon request or at a regularly scheduled time.
Related Articles
-BASIC EDUCATION OVERVIEW - Basic Investing
ARV - After Repair Value
Birddogging
Contract for Deed
Dealing with Contractors
Estimating Profits
Evictions - A Primer
Executory Contract
Foreclosure Overview
Foreclosure Types Overview
Hard Money Loans - a/k/a Asset Based Lending*
Lease Options
Leverage
MAO - Maximum Allowable Offer
Multi-Family Investing Basics as Presented by David Lindahl on March 4, 2006
No-Money Down Real Estate Investing
Options
Part-Time v Full-time
Passive Investing For Beginners
Pre-Foreclosure
Profit Calculation
Remodeling for Beginners
Rent vs Buy Is Really Rent vs Sell
Seller Financing as Investor Buying Tool
Skiptracing
Subject To
Wholesaling
Return to Listing
Return to Investor Education
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